Marc
Recycles dryer sheets
We are going to buy our retirement home from my folks who are moving to independent living. Alas, I am still two or so years from retirement. The new home is in a different state so we can't actually move in. We are planning on renting it out. My questions deal with financing.
Will the loan (30 year fixed) rate be different for second home versus rental property? Am I "lying" if I say it is my second home and then turn around and rent it immediately. My payments on first and second homes would be low enough that total debt payment will only add up to 28% to 29% of gross pay so I should be able to qualify even if not rental. Finally, if we were able to find a renter before we were able to close, in Texas, any problem with my folks signing the lease and then transferring it to me when we close on the house?
thanks,
Marc
PS Thinking of 30 year loan because still cheap money; however, would i be foolish to get a 7/1 ARM and take eventual proceeds from current house to aim towards paying the new house off in seven years?
Will the loan (30 year fixed) rate be different for second home versus rental property? Am I "lying" if I say it is my second home and then turn around and rent it immediately. My payments on first and second homes would be low enough that total debt payment will only add up to 28% to 29% of gross pay so I should be able to qualify even if not rental. Finally, if we were able to find a renter before we were able to close, in Texas, any problem with my folks signing the lease and then transferring it to me when we close on the house?
thanks,
Marc
PS Thinking of 30 year loan because still cheap money; however, would i be foolish to get a 7/1 ARM and take eventual proceeds from current house to aim towards paying the new house off in seven years?